Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336537 
Year of Publication: 
2025
Series/Report no.: 
ADB Economics Working Paper Series No. 825
Publisher: 
Asian Development Bank (ADB), Manila
Abstract: 
This paper studies how international buyers' market power and transport mode shape the pass-through of exchange rate shocks to export prices. Using transaction level customs data from the Bangladeshi garment sector, we first document substantial buyer market power and the concentration of export activity in key trade hubs that shape transport decisions. We then show that large buyers leverage both their market power and their reliance on air freight to mitigate the impact of exchange rate fluctuations. Taken together, our findings highlight how buyer characteristics shape exporters' adjustment to external shocks, with broader implications for regional economic resilience.
Subjects: 
Bangladesh
exchange rate
global value chain
market power
transport mode
JEL: 
D22
D43
E31
F10
L14
L22
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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